Sagging GDP Growth Is A Gut Punch And Accelerating Inflation Is A Hard Right Hook

Q4 2025 GDP growth was revised sharply down from 1.4% to 0.7% (a 70bps downgrade). Rising inflation and a weakening labor market raise downside and policy risks, making defensive portfolio positioning—higher quality equities, increased bond/cash allocations, and reduced cyclicality—more pressing.

Analysis

Q4 2025 GDP growth was revised sharply down from 1.4% to 0.7% (a 70bps downgrade). Rising inflation and a weakening labor market raise downside and policy risks, making defensive portfolio positioning—higher quality equities, increased bond/cash allocations, and reduced cyclicality—more pressing.